Tax Credits, Anyone?

In 2005, Congress passed, and the president signed into law, the 2005 Energy Policy Act (EPAct). One provision of this act is a $2,000 per home business tax credit for builders who build energy-efficient homes. The homes must be sold in 2006 or 2007 and must use no more than 50% of the energy used by a home built to 2004 International Energy Conservation Code (IECC) standards. To show that the home will perform to this level, it must be modeled using IRS-approved software and then inspected, tested, and approved by a certified HERS rater. So how do you build a home 50% better than 2004 IECC? That’s an excellent question. But unfortunately, there is no single answer. The answer depends on where the home is being built, and on what energy-saving features the builder is willing to put into the home. Some energy-efficient builders may find they are already building homes that qualify for the tax credit. Others may find the goal daunting, but ultimately attainable. Still others will find that the investment required to attain the 50% goal greatly exceeds the credit. As the product manager for Architectural ...